| State: |
OH |
| Incentive Type: |
Special Purpose Zone Incentives and Credits |
| Incentive Title: |
Enterprise Zone Credits |
| Description: |
1. ENTERPRISE ZONES: Property Tax Abatements Provides real and personal property tax abatements for businesses that expand or locate in areas designated as Ohio Enterprise Zones. The rates/terms are: up to 75% exemption in incorporated areas and up to 60% exemption in unincorporated areas on real property improvements or tangible personal property tax valuation for up to 15 years; Local school board approval is required to exceed these rates and/or term limits. Abatements apply to the increase in assessed value for real property and personal property (includes inventory) first-used by the business in Ohio.
Note: Ohio Tax Reform in 2005 will phase out the personal property tax over four years and eliminate taxes on new personal property placed in service after January 1, 2005.
2. ENTERPRISE ZONES: Income Tax Factor Relief
Companies approved for property tax abatements under the Enterprise Zone may reduce the payroll and property apportionment factors in the calculation of their Ohio income/franchise tax liability when creating new jobs within the Enterprise Zone. |
| Eligibility Requirements: |
1. Business must create or retain jobs within the Enterprise Zone. Tax abatements apply to industrial and commercial projects. Retail projects are eligible only in targeted areas. Business must finalize agreement to retain or create employment; establish expand, renovate or occupy a facility within an Enterprise Zone; and invest in new real and/or personal property prior to project initiation.
2. Businesses receiving property tax abatements under the Enterprise Zone must hire 25% of new jobs created within the Enterprise Zone from among persons falling within one of five designated disadvantaged groups. |
| Geographic Restrictions: |
Ohio Enterprise Zones |
| Granting Authority: |
Ohio Department of Development |
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